Monday, October 22, 2012

After being ousted by a proactive board of directors on Tuesday, Citigroup’s former chief executive Vikram Pandit is unlikely to suffer a decline in his standard of living.

As CEO of Citigroup, a $1.9 trillion asset global banking giant, Mr. Pandit was paid a relatively modest base salary of $1.67 million during 2011. During 2009 and 2010, as Citigroup was struggling to recover from huge losses associated with the financial crisis, Mr. Pandit received compensation of only $1 per year after a shareholder revolt over excessive executive pay.

Mr. Pandit’s base salary, however, represented only a fraction of his total compensation from Citigroup. According to the Washington Post, during his five year reign at Citigroup, Mr. Pandit received the almost incomprehensible sum of over a quarter of a billion dollars.

If Citigroup doesn’t alter Pandit’s pay, its shareholders will have paid him about $261 million in the five years since he became CEO, including personal compensation and about $165 million for the 2007 purchase of his Old Lane Partners LP hedge fund in a deal that positioned him to take charge of the company. Pandit shut Old Lane and booked a $202 million writedown soon after he took the post.

Most shareholders won’t begrudge high pay for a CEO as long as there is a correlation between pay and stockholder returns. In the case of Citigroup, the world was turned upside down as Mr. Pandit walks off with a fortune while shareholders have been decimated by an 89% decline in the value of their shares during the five years that Pandit ran Citigroup.

Courtesy: Wall Street Journal

Is it any wonder that almost half of all Americans have a lack of confidence in the integrity of the banking system?

VOTE SMART

PUBLIC SERVICE

This is intended to be a public service to help
YOU become more informed.
It has not been requested nor paid for by any
political party ,candidate or their representative.
You can verify the Pac's
on Google. Below or the links to ALL
CHECK OUT CANDIDATE IN YOUR STATEBALLOT PEDIAFollow the money..FOLLOW THE MONEYFederal Elections CommissionThomas Library of Congress
To search for a bill, elected official, voting recordTHOMAS LIBRARY OF CONGRESS

POLITIFACTS

WRITING CONGRESS MADE EASY

Writing Congress is now easier than ever.
During our relaunch of Congress.org last week, we
removed the requirement that you register and log
in every time you want to write your lawmakers.
Now, all you need to do is click on the words
"Join the Conversation, Write Your Lawmakers"
in the upper-right corner of the site.
Or, you can click on the link below to be taken
to a form to write all of your federal
representatives at one time.Write all your federal representatives at one time.Write all of your state lawmakers at one time.

AMERICA'S DEBT CLOCK

THE DEFICIT

OH Say! USA

BUY MADE IN THE U.S.A.

DIRECTORY

EVERYTHING YOU NEED TO KNOW

WORLD CLOCK

Our forefathers pledged their lives, their fortunes and their scared honor to give us a Republic with Liberty and Freedom and Benjamin Franklin upon leaving the signing of the Constitution said "we have given you a Republic, if you can keep it." Can we keep it? Are we going to stand by and let the government we elected take away our Freedom and Liberties? FREEDOM MUST BE DEFENDED, NOW IS THE TIME and WE ARE THAT GENERATION!!! Semper Fi

Amazon SearchBox

Amazon Deal of The Day Sidebar Gadget

"Gimme Five"

Matthew Vadum's

Subversion

American Freedom by Barbara is a non-partisan web site. Content on this web site is expressly that of the contributing author. Opinions expressed by contributing writers are expressly their own and may or may not represent the opinions of American Freedom by Barbara. American Freedom by Barbara is not affiliated with any mainstream media organizations. American Freedom by Barbara is not supported by any political organization or candidates. Responsibility for the accuracy of cited content is expressly that of the contributing author.